The U.S. has taken its own economic allies hostage

In an interview with Mizan, Hanif Ghaffari stated:

“The U.S. administration’s official decision to continue the trade war with China has sent a new shockwave through global markets, while also triggering deep and persistent anxiety among Washington’s allies. During Trump’s second term, China demonstrated that it could leverage its position to hold certain critical elements of U.S. trade hostage. The massive U.S. trade deficit with China — which remains in Beijing’s favor — persists, and China’s retaliatory measures in the tariff war have led many global players to resist fully complying with Trump’s restrictive policies. Consequently, Chinese negotiators have maintained a defensive stance, anticipating Trump’s possible return to his hardline trade positions. Meanwhile, Wall Street and American investors, who had been clinging to faint hopes of a deal, have once again been jolted by recent statements.”

Ghaffari added:

“This dispute, which is both deep-rooted and far-reaching, will inevitably affect other international actors, including the European Union and countries in North and Central America. The reason lies in both sides’ insistence on imposing secondary sanctions against states that align with the opposing party. Although the sanctions may remain confined to the two primary contenders, the principle of ‘ally recruitment in a trade war’, which both countries have pursued from the outset, ensures that in the coming days and weeks we will witness the short- and mid-term fallout of this confrontation on global trade. Under such circumstances, the World Trade Organization is losing its regulatory capacity, as the sheer economic power of both sides continues to undermine current trade laws and principles.”